No. of Recommendations: 13
A huge part of being a BRK shareholder is talking about the proverbial "elephant" that Berkshire is trying to bag.
The problem is, our largest acquisition to date, PCP was an unmitigated disaster, as was the recent Pilot acquisition, the Lubrizol purchase and the Kraft/Heinz debacle.
It seems like Berkshire's real circle of competence is insurance and investing in marketable securities.
So I don't understand all this hand wringing of waiting for the perfect acquisition.
I would love to see Berkshire acquire something like Chubb, or buy huge into the S and P 500 Index or individual names when valuations become favorable.
Explain why this would NOT be preferable to buying 100% of private businesses?
Despite all of Warren's folksy mantras about reading people, and carefully selecting partners, etc., the track record has been meh, hasn't it?
No. of Recommendations: 6
PCP is now making money . Berkshire bought the stock too early though . PCP is back at their prepandemic levels an . KHC , has given over 6 billion from dividends on a 9.8 stake.
No. of Recommendations: 2
“ KHC , has given over 6 billion from dividends on a 9.8 stake.“. Go figure.
No. of Recommendations: 0
"The problem is, our largest acquisition to date, PCP was an unmitigated disaster, as was the recent Pilot acquisition, the Lubrizol purchase and the Kraft/Heinz debacle."
You left out PacifiCorp.
"...buy huge into the S and P 500 Index or individual names when valuations become favorable.
Explain why this would NOT be preferable to buying 100% of private businesses?"
Well, for one thing Berkshire can move profits of wholly owned subs elsewhere.
"the track record has been meh, hasn't it?"
I'd like to see the track record, both for 100% acquisitions and for equities. Pointing out some losers, in acquisitions or equities, doesn't give a quantitative picture. I take your point, though. The track record for corporate acquisitions, including Berkshire, isn't exactly glowing. Overall, though, I suspect Berkshire's track record for acquisitions is not bad. We need numbers.
